Examination of Title
Definition and meaning of Examination of Title in real estate.
An examination of title is a detailed review of public records to determine the legal ownership history of a property and identify any claims or encumbrances. This search is performed prior to closing a real estate transaction to ensure the buyer receives a clear title.
In more detail
A title examiner or attorney conducts this review by tracing the property ownership through deeds, mortgages, wills, and court records. The goal is to uncover potential problems such as unpaid property taxes, mechanic's liens, easements, or unpaid judgments that could affect the buyer's ownership rights.
Finding these issues early allows the seller time to resolve them before the closing date. Title insurance is typically purchased after the examination to protect the buyer and lender from any defects that were not discovered during the search.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Performed by | A title company, real estate attorney, or professional title examiner |
| Typical timing | During the escrow period prior to the closing of the sale |
| Applies to | Both residential and commercial real estate transactions |
During an examination of title for a prospective home purchase, the title company discovers an unpaid tax lien from five years ago that the seller must satisfy before the sale can close.
Frequently asked questions
Why is a title examination necessary if I have title insurance?
The examination finds and resolves known issues before you purchase the property, while title insurance protects you against hidden defects that may surface in the future.
How far back does a title search typically go?
The search typically goes back thirty to sixty years, depending on state law, to ensure there are no breaks in the chain of ownership.